DBS Group Research downgraded GCL TECH from Buy to Hold and reduced its target price due to several factors. Despite GCL TECH being a major global producer of granular silicon with declining production costs, uncertainties surrounding industry consolidation have arisen from policy interventions. Recent acquisitions in the sector have been deemed overpriced, leading to a decline in valuation forecasts. Additionally, while the company's technological advancements and reduced cash production costs are positive, the regulatory environment and the need for government policies to facilitate market consolidation have created further uncertainties.
